U.K.-based Softcat has acquired Dallas-based solution provider GDT for $1.05 billion in enterprise value, creating what industry executives are calling a formidable new global competitor in the IT services market. The deal, announced this week, combines Softcat's $2.85 billion in revenue and 2,800 employees with GDT's $1.4 billion in annual revenue and 900-person workforce. The acquisition marks the culmination of Softcat's multi-year search for a North American partner with the scale and capabilities to support its international growth strategy.
The transaction will be financed through a combination of £100 million in cash from Softcat's balance sheet, £550 million in new debt facilities including a £450 million revolving credit facility and £100 million term loan, and £350 million from an equity placing expected to represent less than 10 percent of issued share capital. GDT, ranked No. 56 on the 2026 CRN SP 500, will retain its name, leadership team, and workforce, operating as a wholly owned subsidiary of the publicly traded U.K. firm, which has held the No. 1 spot on CRN's top VAR list for three consecutive years. H.I.G. Capital, the Miami-based private equity firm that acquired an 80 percent stake in GDT five years ago, said the solution provider doubled its EBITDA and increased its mix of recurring gross profit during that period.
"This is a formidable new global competitor that we are all going to have to deal with," said an anonymous U.S.-based SP 500 CEO quoted in the announcement. "Hats off to Softcat for getting ahead of what is sure to be a new era of global competition as customers look for global scale and support for AI adoption and implementation." The executive added that in today's environment, $1 billion in revenue represents minimum table stakes, whereas companies with $300 to $500 million could previously compete for global deals. Softcat Executive Director and CEO Graham Charlton stated that customers have repeatedly asked the company to support their technology requirements outside the U.K. and Ireland, particularly in North America, and that GDT meets every benchmark including meaningful U.S. scale, an established enterprise customer base, deep data center and networking capabilities, and a customer-first culture.
The deal reflects growing demand for providers with international reach as organizations seek global-scale support for AI adoption and implementation, according to industry executives. GDT said customers will gain enhanced global support and deeper technical resources as both companies invest in expanding GDT's Global Operations Center in Bangalore, which will provide expanded engineering expertise, optimized business systems, and 24/7 service that's increasingly critical in today's always-on IT environment. One SP 500 CEO noted that the final price of the deal would have hinged on the percentage of services and recurring revenue GDT brought to the table, with higher levels of both driving higher valuations.
The transaction is expected to close no later than the end of Q1 calendar year 2027, subject to customary regulatory filings and approvals. GDT CEO Shawn O'Grady said in a statement that joining forces with Softcat will benefit every customer, employee, and technology partner as well as both companies' bottom lines, while Charlton said the combined entity will have the scale, talent, and technical depth to capitalize on massive growth opportunities in today's technology market. Several U.S.-based SP 500 CEOs said Softcat had approached them in recent years investigating the possibility of similar deals. The convergence of enterprise IT buying patterns and the capital intensity of supporting emerging technologies may accelerate consolidation among mid-market players who lack the financial depth to invest in global delivery infrastructure alone.